As I know advances forfeited for cancellation of an agreement to provide a service represent consideration] however, if A builder got an advance for booking of flat but thereafter booking was cancelled & 25% of advance amt is forfeited but the problem is agreement has not been entered so whether the forfeited amt I.e 25% would fall under the definition of consideration of Service tax becoz there is no agreement it is only oral contract of booking of flat????
Menu
service tax:- definition of consideration related doubt
Replies (1)
Agreement can be both Oral as well as written. Generally people have the habit of entering into written agreement to Avoid Future Disputes and use it as a proof / self defence.
Even if no agreement has been entered into , but for the buyer before the before the contract was cancelled it was always an agreement to buythe flat and similarly go the seller it was an agreement to sell the flat.
25% Can be justified as the Concideration paid by buyer to seller to reserve his rights to pccupation of a specific property.
Recent Topics :
- Hi experts needed some help
- Gift of Immovable Property u/s 92 of Income Tax Ac
- NSE BSE Pre-open session changes from 7 September
- Financial statements for non corporate entities
- Hi experts need some help
- Is SAP FICO a good career option for finance and a
- Direct Cost booking
- TDS on Property Purchase Paid
- Cash Purchase Above ₹10,000, ITR/40A(3) Trea
- TDS on dividend to non resident shareholders
Related Topics :
CAclubindia
